Table of Contents
- What Was Form 2106-EZ: Unreimbursed Employee Business Expenses?
- Key Takeaways
- Who Could File Form 2106-EZ?
- How to File Form 2106-EZ
- When Vehicle Expenses Are Still Deductible
- What Types of Expenses Could I Claim With Form 2106-EZ?
- Can I Still Deduct Business Expenses if I’m an Employee, but My Employer Doesn’t Reimburse Me?
- Why Was Form 2106-EZ Discontinued, and What Is Its Replacement?
- The Bottom Line
What Was Form 2106-EZ: Unreimbursed Employee Business Expenses?
Let me explain Form 2106-EZ directly: it was an IRS tax form that employees used to deduct ordinary and necessary expenses tied to their jobs. These were costs you paid out of pocket without reimbursement from your employer.
The Tax Cuts and Jobs Act changed everything by wiping out most of these deductions for the average taxpayer. That's why Form 2106-EZ stopped being used after the 2017 tax year. But remember, while 2106-EZ is gone, Form 2106 itself is still around for a select few who qualify—think Armed Forces reservists, performing artists, fee-based state or local government officials, and employees dealing with impairment-related work expenses.
Key Takeaways
You could use Form 2106-EZ to deduct things like meals, hotels, airfare, and vehicle costs if they were job-related. The form got discontinued because the Tax Cuts and Jobs Act repealed unreimbursed employee expense deductions entirely. Now, only the full Form 2106 is available, and even then, just for taxpayers in specific professions.
Who Could File Form 2106-EZ?
Ordinary expenses are the ones common and accepted in your line of work, and necessary ones are those essential for getting the job done. Form 2106-EZ was the simplified version of Form 2106, letting you claim deductions for unreimbursed job expenses like business travel. To qualify, your employer couldn't have reimbursed you, and you could use the standard mileage rate for vehicle costs. This form was only good through the 2017 tax year, as the Tax Cuts and Jobs Act repealed these deductions.
How to File Form 2106-EZ
The form had two parts: Part I for tabulating all your employee business expenses and figuring out which ones qualified for a deduction, and Part II focused on vehicle expenses. In Part I, you'd list unreimbursed costs like airfare, lodging, parking, tolls, car rentals, and pull in vehicle expenses from Part II. Incidental expenses, such as valet tips or small cash transactions without receipts, were deductible too. Meals and entertainment went in separately, since you could usually only claim 50% of those.
You could also calculate overnight expenses using GSA per diem rates for U.S. cities or State Department rates for foreign travel. These rates vary by location and time— for instance, in Aspen, Colorado, the GSA sets a $407 per diem for lodging in February 2025, dropping to $207 in September, with meals at $92 for 2025.
When Vehicle Expenses Are Still Deductible
Part II was all about personal vehicle expenses, claimed via the standard mileage rate—multiply the IRS rate for the year by your business miles. This rate covers gas, repairs, and wear and tear. Self-employed folks can still deduct personal vehicle use for work; for 2025, it's $0.70 per mile, up from $0.67 in 2024. You can also deduct for charitable or medical purposes, but job relocation deductions are now only for active military.
What Types of Expenses Could I Claim With Form 2106-EZ?
Eligible expenses covered meals, lodging, transportation, and vehicle costs linked to your job duties. The form handled incidental expenses like valet tips and business travel costs, with meals and entertainment typically capped at 50% deduction.
Can I Still Deduct Business Expenses if I’m an Employee, but My Employer Doesn’t Reimburse Me?
After the 2017 Tax Cuts and Jobs Act, most employees can't deduct unreimbursed business expenses anymore. That said, certain groups like Armed Forces reservists, performing artists, and fee-based government officials might still qualify using Form 2106.
Why Was Form 2106-EZ Discontinued, and What Is Its Replacement?
The form was discontinued post-2017 due to the Tax Cuts and Jobs Act. Now, if you're in qualifying professions like Armed Forces reservists, performing artists, or those with impairment-related expenses, you use the more detailed Form 2106 instead.
The Bottom Line
Form 2106-EZ let you deduct various job-related expenses easily, but tax reforms ended it after 2018. If you qualified back then, it simplified claiming business costs. Today, only specific groups can claim deductions via Form 2106.
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